Our View: Wise Headlee votes require residents to learn about budget

Sunday

Sep 29, 2013 at 10:00 AM

Informed voters make better decisions, which is why Adrian city residents should plan to attend one of three upcoming meetings to discuss a tax override ballot proposal, plus other options, including city oil and gas revenue.

The meetings, all at 7 p.m., are scheduled for:

— Oct. 1 at the Lincoln Elementary School gymnasium.

— Oct. 9 at the Michener Elementary School gymnasium.

— Oct. 17 at the Alexander Elementary School gymnasium.

City administrator Dane Nelson is to explain effects on the city budget caused by the state constitution’s 1978 Headlee Amendment. Among other things, the act required property millages to be reduced when property values went up by more than the rate of inflation.

Adrian is asking city voters to approve what is known as a “Headlee override,” in which voters are allowed to restore the millage to an earlier level prior to its rollback. In Adrian’s case, the city will ask voters to return the city property tax level to 15 mills from 13.63 mills — the current level due to Headlee rollbacks.The override would raise about $514,000 for the city in 2014. It would cost the owner of a house with a taxable of $50,000 about $69 more per year.

An alternate suggestion has been to use oil and gas lease and royalties revenue to improve the city’s budget picture. Among other things, the city has relied on grants to fund three firefighter positions. Those grants are due to expire, and the city has announced layoff notices in a preliminary step to re-apply for new grants.

City commissioners instead have approved a strategic plan to place the money in a trust to earn interest, which could later be used to fund city improvement projects or “one-time expenditures.” Debate also is expected over whether to make the trust “revocable” by a future commission or “irrevocable,” meaning the arrangement would be permanent.

Nelson hosted a similar meeting last February to explain the city deficit and a decision to close the city recreation department. Not everyone agrees with that decision, but we think people who attended had a better idea afterward of what might work and why.

Even fewer residents understand the city budget’s future challenges, the risks and rewards involved with oil and gas leases, and the tradeoffs involved in “revocable” versus “irrevocable” trusts. Yet, as citizens, it is everyone’s duty to seek the information needed to make wise decisions. We encourage residents to attend one of the meetings in upcoming weeks to ask questions and learn more about the issues.